The new omnibus decree, agreed upon by the Spanish Government and Junts, has been officially published in the BOE meaning that free public transport will continue and pensions will increase in the Canary Islands.
The new legislation, which was approved yesterday (Tuesday) by the Council of Ministers, follows an agreement between the PSOE and Junts giving them a majority vote. This deal salvages several measures from a previously rejected decree, in exchange for parliamentary discussions on a motion urging Prime Minister Pedro Sánchez to undergo a confidence vote.
The initial omnibus decree was voted down last week in the Congress of Deputies by Junts, the Popular Party (PP), and Vox, leading to the annulment of all proposed measures, including free public transport and financial aid for those affected by the eruption in La Palma.
As part of the revised decree, new protections have been introduced, including the creation of a public guarantee system for landlords and tenants. The legislation also maintains anti-eviction measures and enhances housing policies by offering financial assurances for property owners and renters.
Pension Increases and Social Benefits
A key feature of the decree is the revaluation of pensions for 2025. Under the new provisions, contributory and civil service pensions will rise by 2.8%, while minimum pensions will increase by approximately 6%. Non-contributory pensions and the Minimum Vital Income (IMV) will see a rise of 9%.
Additionally, the law implements a new "solidarity contribution" from 2025, increases maximum social security contribution bases, and raises the pension cap to €3,267.60 per month. Widow’s pensions and those for dependents will increase by 9.1%, while the Compulsory Old-Age and Disability Insurance (SOVI) pensions will rise by 6%, bringing non-concurrent pensions to €560 per month and concurrent pensions to €543.60 per month.
These pension increases were originally approved in the first omnibus decree at the end of 2024. Although payments were processed for January, the annulment of the decree meant that pensions would have reverted to lower rates in February. However, with the approval of the new decree, the revised rates will remain in place.
Transport Subsidies and Free Public Transport
The new decree reinstates government-funded transport discounts, which were temporarily suspended last week after the previous decree was rejected. These subsidies include up to 50% discounts on regional transport and free travel on state-run buses.
Public transport in the Canary Islands will remain free throughout 2025. High-performance services between Murcia and Alicante, as well as Avant connections between Ourense and A Coruña and Madrid-Salamanca routes, will also be free for the first half of the year. Additionally, public bicycle rental systems will continue to benefit from a 50% discount.
Foreign Investment Protections
The new decree extends until 31 December 2026 the suspension of the liberalisation regime for certain foreign direct investments in Spain, known as the "anti-takeover shield" (escudo antiopas). This measure is aimed at protecting strategic sectors from potential security or public order risks.
The restrictions will apply to investments from residents of European Union (EU) and European Free Trade Association (EFTA) countries, ensuring that key industries remain safeguarded. The decree complements the Foreign Investment Law of July 2023, which introduced a screening mechanism for foreign investments in Spain.
Under this policy, the Spanish government retains the authority to approve foreign investments in publicly listed strategic companies where the investor seeks to acquire more than 10% of shares, as well as in unlisted companies where the investment exceeds €500 million.
The omnibus decree, which comes into effect on Thursday, marks a significant step in reinforcing Spain’s social protections and economic resilience while addressing key public service needs.
